IBEX 35 Stock Index
IBEX 35 is an Index that keeps track of top 35 stocks in the Bolsa de Madrid - Spanish Stock Market Exchange. This index tracks the capitalization of 35 most traded stocks in the Madrid Stock Exchange Market. The component stocks used to calculate this index are reviewed twice per year.
The IBEX 35 Stock Index Trade Chart
The IBEX 35 Stock Index trade chart is displayed and illustrated above. On the example above this Index is named as SPAIN35CASH. As a trader you want to find a broker that provides this IBEX 35 Stock Index trade chart so that you can start to trade it. The stock index example above is of IBEX 35 Stock Index on the MT4 Forex & Stock Indices Trading Software.
Other Trading Information about the IBEX 35 Stock Index
Official Symbol - IBEX:IND
The 35 components stocks that makes up IBEX 35 Stock Index are picked from the top companies in Spain. The 35 stocks make up most of the trading turnover volume in the Madrid Stock Exchange Market.
Strategy for Trading the IBEX 35 Stock Index
IBEX 35 Stock Index tracks the capitalization of top 35 companies in Spain. This index generally moves up over longterm but it is more volatile in its trend movements. When compared to other indexes such as the EURO STOXX & the DAX 30 which have lower volatility in their trend movements, this stock index has wider swings in its trend movements.
Over a long period of time this index will generally move upwards, as a trader you want to be biased and keep buying as the stock index moves up.
A good index trade strategy would be to keep buying the dips - although as a trader wanting to trade this index, be prepared for generally much wider swings when it comes to trading this stock index.
During Economic SlowDown and Recession
During economic slowdown and recession times, companies start to report lower profits and lower growth prospect. It is due to this reason that traders start to sell stocks of companies reporting lower profits and therefore the stock index tracking these particular stocks will also begin to move downwards.
Therefore, during these times stock index trends are likely to be heading downward and as a trader you should also adjust your strategy accordingly to suit the prevailing downwards trends of the stock market index that you are trading.
Contracts & Specifications
Margin Required Per 1 Lot - € 140
Value per 1 Pips - € 1
NB: Even though the general trend is generally upward, as a trader you have to factor in the daily market volatility, on some days the stock index might oscillate or even retrace, stock index market retracement might also be significant at times and therefore as a trader you need to time your entry precisely using this trading strategy: Stock index trading strategy & at same time use proper money management rules just in case of more unexpected volatility in the market trend. About money management rules in index trading topics: What is stock index money management & stock index money management methods.
